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Microsoft Layoffs Affecting Thousands Could Be 'The Largest in Gaming History': 5 Xbox Studios at Risk

Microsoft is weighing studio closures, spinoffs and game cancellations as sources say at least 1,000 jobs could be cut across Xbox.

  • Microsoft plans to announce a wave of layoffs for its Xbox studios and employees starting July 6th, resulting in studio closures, potential mergers, and canceled game projects.
  • The upcoming layoffs are part of a "reset" under new CEO Asha Sharma, who hinted at "making hard choices" last month and claims her mandate prioritizes becoming the top gaming company.
  • Microsoft is weighing closure of at least five studios, including the developers behind Marvel's Blade, which may be canceled; the company also explores selling Undead Labs and spinning off Compulsion Games, Double Fine, and Ninja Theory.
  • Rumors suggest at least 1,000 job losses, with Duke Nukem co-creator George Broussard claiming this will be the "largest single layoff event in gaming history," affecting active studios not being closed.
  • Bloomberg's Jason Schreier revealed the company is already ending contracts before July 6th, while the January 2024 Xbox layoffs following the Activision Blizzard merger included 1,900 employees, which reporters called a "bloodbath.
Insights by Ground AI

27 Articles

With Xbox, the evidence of a comprehensive wave of redundancies and conversions is condensed. After several internal studios were recently considered to be at risk, Undead Labs, the team behind State of Decay 3. This seems to be no longer just about individual savings, but about a larger reset of the entire Xbox division. Already at the beginning of June, it was reported that Microsoft's gaming division is preparing larger redundancies and budge…

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MP1st broke the news on Monday, June 29, 2026.
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